The downturn in the struggling manufacturing sector showed no sign of easing during March as businesses failed to beat tough competition from overseas rivals for new contracts.

While the 600 industrial companies questioned in a survey by Markit and the Chartered Institute of Purchasing & Supply gave a more positive reading of 48.3 on current trading and outlook, compared with February’s 47.9, it remained firmly below the crucial 50 mark that separates growth and contraction.

Companies were hit hard by a sharp drop in new export orders amid weak demand from Europe and strong competition in the United States and